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DAILY NEWS AND INFORMATION FOR THE GLOBAL GRID COMMUNITY / APRIL 14, 2003: VOL. 2 NO. 15

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Breaking News - Security:

Worldwide Security Server Appliance Market Grows $42M

According to IDC's Worldwide Security Server Appliance Tracker, worldwide security appliance market factory revenues were $355 million in the fourth quarter of 2002, up 15% from the previous quarter and representing the largest sequential growth for 2002. Firewall/VPN (virtual private network) appliances continued to be the leading segment of the market with 90% revenue share in the fourth quarter. However, the network intrusion detection sub-market showed signs of momentum as it outpaced the overall market with 19% sequential growth.

"Enterprises increasingly see security appliances as the bedrock of their security posture. The firewall/VPN appliance market continues to grow despite these weak economic times and network intrusion detection appliances are increasing in popularity," says Charles Kolodgy, research director for IDC's security products service. "Looking at the overall security appliance market by price band, much of the growth is occurring with products geared for small business, branch offices, and supporting large data centers. By having so many flavors of security appliances, companies can service many more segments of the market."

In the fourth quarter, Cisco maintained the leading position in the total worldwide security server appliance market capturing 37% of revenue share. Netscreen posted the strongest sequential growth among the top five vendors achieving 32% growth from the third quarter.

"Market shares only tell a miniscule part of the story," says Chris Christiansen, program vice president for IDC's security products service. "Vendors are jockeying for key price bands with newly introduced products. Because customers vary radically by price band, success in one area has no bearing on another market. Increasingly, we believe that measuring price band performance is far more important than the overall success of one or another vendor."

Top 5 Vendors, Worldwide Security Appliance Factory Revenue, Fourth Quarter 2002 ($M)

  • Cisco: 37.4% Market Share, 9.2% Revenue Growth Q3/Q4
  • Nokia: 15.9% Market Share, 18.3% Revenue Growth Q3/Q4
  • Netscreen: 12.0% Market Share, 31.7% Revenue Growth Q3/Q4
  • Sonicwall: 5.6% Market Share, -12.7% Revenue Growth Q3/Q4
  • Watchguard: 4.5% Market Share, 14.0% Revenue Growth Q3/Q4
  • Others: 24.6% Market Share, 23.2% Revenue Growth Q3/Q4
  • Total Revenue Growth Q3/Q4: 14.8%

IDC's Worldwide Quarterly Security Server Appliance Tracker is a quantitative tool for analyzing the global security server appliance server market on a quarterly basis. The Tracker includes quarterly shipments (both ISS and upgrades) and revenues (both customer and factory), segmented by vendor, sub- market, family, model, region, operating system, price band, CPU type, and architecture.

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